HOW BUSINESSES GENERATE INCOME (MAKE MONEY)

Part 3

Starter

How do businesses make money?

In your books, write down what you understand REVENUE to mean. You can research this and give a definition in simple language.

I will select people at random to feedback to the class.

Lesson Objective

To identify how businesses make money.

To identify sources of revenue for a business.

Activity 1

Businesses need to earn money to survive.

This is called revenue.

The main source of revenue is from the goods or services the business offers.

Calculating revenue

In order to work out the amounts of money a business makes from selling goods and services, we have to multiply the number of units sold by the selling price.

Number of sales x Price per unit = revenue

Now some examples together!

NEED TO KNOW FOR THE EXAM!!

Activity 2

Other sources of revenue

Activity 3

In groups, using the following descriptions, make a list of all their revenues!• Mechanics• Caterer• Pawnbroker• Butcher• Jeweller• Beautician• Shoe shop• Lawyer

Products Services

Mechanics Beautician Shoe Shop

Products Services Products Services Products Services

Car parts MOTs Combs Hair cuts shoes reheeling

Sell Wheeles Repairs brushes Hair Styling laces fitting

  inflate tyres Shampoo Dye hair polish  

scissors Wash hair bags  

Caterer straighteners Up do's cleaner  

Products Services nail varnish Nails

Makes food Parties nail files Waxing Lawyer

Pizzas Weddings make up Ear piercing Products Services

wills defends people

Pawnbroker Jeweller   House buying and selling

Products Services Products Services   divorces

Stuff Lends money watches fix jewellery   help people

  buy things from you earrings engraving   contracts

bracelets cleaning   guidance

Butcher necklesses  

Products Services lighters  

Meat Cut and trim meat rings  

BBQ packs Delivery

Christmas packs  

Recap

1. What does the word revenue mean? 1 mark

2. How do you calculate the amount of revenue a business makes?1 mark

3. State two types of goods or service that might be offered at a hotel. 2 marks

4. Apart from selling goods and services, what other sources of revenue might a business have?

4 marks

5. Think of a large supermarket and two different sources of revenue for it.

2 marks

Now you will mark each others!